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Newberg council discusses options to fund gravel‑street paving, declines immediate gas‑tax referral
Summary
Council discussed funding approaches for long-standing gravel streets — federal grants, local improvement districts, urban-renewal (NURA), and a local gas-tax referendum — and members said now is not the right time to place a gas-tax measure on the ballot; staff will continue exploring grants and other targeted mechanisms.
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Councilors spent substantial time May 18 discussing ways to fund the paving of gravel streets that have long been prioritized by residents but lack funding for full reconstruction.
City staff said reconstructing a cluster of gravel streets could cost an estimated $8–10 million for a couple of miles. Council members and staff discussed multiple options: pursuing federal or state grants (staff noted some federal transportation grants prioritize streets with fatalities or safety need), forming a local improvement district (LID) that would assess benefited properties, seeking modifications to the city’s urban-renewal (NURA) project list, or placing a local gas‑tax measure on the ballot for voter consideration.
Several councilors said the timing is poor to ask voters for a gas-tax increase given current fuel prices and contemporaneous ballots and petitions in the region. Concerns included the regressive effect on low-income residents, the fairness of a citywide tax to fund improvements benefitting only a small segment of streets, and the cost of placing a measure on the ballot. Staff noted a LID could spread costs over years and might be used partially, but it would still impose assessments on directly benefited property owners.
Public comment reflected those concerns: Robert Sppy and Becky Wallace opposed a gas-tax referral now, arguing the city should exhaust alternative funding tools and that a LID (or traditional adjacent-owner improvement assessments) would be fairer in some cases. Council agreed not to move forward with a near-term gas-tax referral and suggested continued study, community outreach and coordination with the River Street ad hoc committee and staff for planning and grant pursuit.

